Labourers sit outside a Reliance Industries construction site at the Bandra Kurla Complex in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Reliance Industries Is The World’s Costliest Energy Stock To Own

Mukesh Ambani-led Reliance Industries Ltd. is among the world’s best performing oil and gas stock this year. And this performance comes at a steep valuation – highest among its peers.

Of the eight $100-billion market capitalisation plus energy companies, RIL’s over 34 percent year-to-date gain has made it more expensive than peers such as ExxonMobil Corporation Ltd., PetroChina Company Ltd., according to data compiled by BloombergQuint.

Here are the key reasons for RIL’s outperformance

Strong Q1 Numbers

  • Standalone earnings before interest, tax, depreciation and amortisation grew 13 percent--highest in the last 13 quarters.
  • Retail – highest-ever EBIT and EBIT margins.
  • Reliance Jio Infocomm Ltd. – profits and margins surge despite tariff wars.

Telecom Business

  • New venture – home broadband and DTH.
  • Mobile – added 1.9 crore subscribers in May and June; revenue market share rose to 22.6 percent.

Refining Business

  • Singapore gross refining margins averaged around $6.8 a barrel in August versus $4.8 in June.
  • Ramping of new plants to add another $1.5-2 a barrel to GRMs.